When it comes to selected the right location for investment and knowing whether to make improvements on your home, Monopoly provided some very valuable lessons.

Knowing fact and figures as well as the odds of an outcome will also prove valuable in decision making. Know one can guarantee a win at Monopoly, but they can narrow there odds in there favour. Again a lesson for the real world of property development, think before taking the risk and you will increase the likelihood of a retrun on investment.

Monopoly Helps Property Developers – Literally

Here are some further lesson:

Start slow and then build up:

One strategy is to aim for a set of property on the first two sides of the board, which are the least expensive. When you gain a monopoly, buy 3 houses as quickly as possible. Then use the cash generated from these properties to shoot for a complete set on the more expensive side of the board. By the time you’re looking to buy the more expensive properties, you may be able to get them for a song from another player desperate for cash. So start with less expensive properties and work your way up.

Property Developers Lesson:

This is a good real world strategy, too. Buying less expensive properties generally involves less risk. The mortgage will be lower, which can make a huge difference if the property is vacant longer than anticipated or the tenant stops paying. Maintenance is generally less for lower priced properties. And they can still represent an excellent investment. Over time, as cash flow improves and you become more comfortable managing property, you’ll be in a good position to buy more costly properties, such as multi-family units or apartment buildings.

Constantly look for great deals:

When you land on a property owned by the bank, the price is non-negotiable. But as the game progresses, other players may find themselves in need of cash. That’s when great deals can surface. They get the cash they need to stay in the game, and you get a property at a good price.

Property Developers Lesson:

Buying foreclosure properties is the real world equivalent. Have a high standard, be picky and choosy before you commit. All of the rental properties you invest in should start off at a bargain to maximise your ability to hit good profit quickly. House auctions and repossessions are normally a easy way to find a bargain, certainly better than you could ever get buying retail. Look at a lot of properties before putting in a bid, and bid on many more properties than you end up buying.